Protests have escalated, the riyal has plummeted, and Iranians are frantically withdrawing money

Comparatively, against the backdrop of ongoing protests in Iran and the deepening economic crisis, Iranians are speeding up the withdrawal of bitcoins from trading platforms to personal wallets to avoid the risks of inflation and financial regulation.

Blockchain analysis company Chainalysis pointed out that from the outbreak of protests on December 28, 2025 until Iran imposed an internet blockade on January 8, there was a significant increase in BTC transactions transferred from local trading platforms in Iran to unknown personal wallets, indicating that people are more inclined to directly control crypto assets during the turbulent period.

Analysts believe this act is a rational response to the collapse of Iran's currency, the riyal (IRR). According to the data, the exchange rate of the riyal against the US dollar has plummeted from about 42 at the end of last year to more than 1,050 this week, and purchasing power has almost collapsed. Because of its decentralized, censorship-resistant, and transportable characteristics, Bitcoin is regarded as a key tool to combat currency depreciation and political uncertainty, providing people with liquidity and choice.

Chainalysis also pointed out that this phenomenon is in line with global law: in times of war, economic turmoil, or government pressure, people often turn to cryptocurrencies to protect their assets. Notably, Iran's official forces are also increasing their use of crypto assets. The report shows that wallets linked to Iran's Islamic Revolutionary Guard Corps (IRGC) accounted for more than 50% of Iran's total crypto activity reception in the fourth quarter of 2025, and processed more than $3 billion on the chain for the whole year (probably still undervalued).